• Ownership: Common stocks represent an ownership interest in a business we plan to hold for several years, not quarters. It’s very important for us to have a high degree of confidence in what a business will earn through a ‘normal’ cycle. Therefore, we are biased toward quality and competitive advantages.
  • Fundamental Research: We fervently believe in knowing each position we own for clients as though we owned the whole company - rather than relying on third party managers, passive funds, or Wall Street research. Rigorous analysis of each investment is key to uncovering securities trading for discounts to their true worth.

  • Common Sense: We operate within a historical context and avoid fad investments or stories benefiting from transient conditions.

  • Patience: Markets can be efficient, but can often become overly optimistic or pessimistic in the short term. Many decision-makers have shorter time horizons or attempt to 'time the market' whereas we believe superior returns come from allowing an investment thesis to mature and compound over time. 

  • Risk: We believe risk is the permanent loss of capital, not volatility or temporary fluctuations in price. With that in mind, we believe part of our job is to protect clients from their own instincts to panic around volatility. We also strive to establish each new stock position with an eye towards a ‘margin of safety' in terms of our assumption of what a company is worth.